National investment loss lawyers KlaymanToskes is investigating brokerage firms and financial advisors who unsuitably recommended investments in KKR Real Estate Select Trust (KREST) to their customers. Our law firm believes many investors may have been misled regarding the risks and liquidity issues associated with KKR & Co. Inc.’s private placement offering.
If your financial advisor recommended an unsuitable Real Estate Investment Trust (“REIT”) based on your investment profile, or disregarded your risk-tolerance when making investment recommendations, you may be entitled to a financial recovery through FINRA arbitration.
If you suffered losses in KKR Real Estate Select Trust (KREST), or any other investments due to unsuitable recommendations by your brokerage firm or financial advisor, contact securities attorney Steven D. Toskes to discuss your potential recovery options at (888) 997-9956 or investigations@klaymantoskes.com for a free and confidential consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
KKR Real Estate Select Trust (KREST) is a non-traded, closed-end real estate investment trust sponsored by KKR & Co. Inc., a global alternative asset manager. Launched in 2020, KREST provides investors with exposure to U.S. commercial real estate through a combination of property ownership and real estate-related debt investments.
As of December 31, 2023, KREST reported a net asset value (NAV) of approximately $1.3 billion and held interests in 82 properties with an estimated aggregate value of $3.4 billion. The portfolio reportedly maintained an occupancy rate of approximately 97%, though occupancy alone does not guarantee profitability, liquidity, or stable investor returns.
KREST is a non-diversified fund, meaning a relatively small number of properties or market sectors may have an outsized impact on performance.
KKR Real Estate Select Trust pursues three primary investment strategies:
While these strategies may generate income, they also expose investors to real estate market risk, interest rate risk, tenant concentration risk, and leverage risk.
Performance in KREST varies by share class, largely due to differences in fees, commissions, and distribution structures. While certain share classes—such as Class I—have reported positive returns since inception, other share classes have experienced mixed or negative cumulative performance.
As of year-end 2023, reported distribution yields ranged from approximately 4.9% to 5.8%, depending on share class. However, distribution yield alone does not reflect total return, and investors may experience declines in NAV, reduced distributions, or both over time.
Like most non-traded REITs, KREST is illiquid. Shares are not listed on a public exchange and cannot be freely sold.
Liquidity is limited to a quarterly share repurchase program, typically capped at 5% of outstanding shares, and subject to board discretion. Repurchase requests may be prorated, delayed, or denied, especially during periods of market stress or increased redemption demand.
These restrictions can leave investors unable to access their capital when needed, even if distributions decline or the investment no longer aligns with their financial goals.
Investments in KKR Real Estate Select Trust carry risks that may not be suitable for many retail investors, including:
If you suffered losses in KKR Real Estate Select Trust, or any other investments, contact securities attorney Steven D. Toskes to discuss your potential recovery options at (888) 997-9956 or fill out a short contact form for a free and confidential consultation.
Potential conflicts of interest may arise when issuers incentivize brokers/investment advisors with substantial commissions to promote their financial products. A problem often associated with alternative investment recommendations is the high sales commissions brokers typically earn for selling these investments, which can be as high as 15%. A representative that recommends investments for the purpose of being compensated through increased commissions, and enriches themselves rather than benefiting the client, is violating securities laws.
To recover investment losses, you do not go through the traditional court system with a lawsuit. The only remedy is through a FINRA arbitration, a specific process designed for these types of disputes. This process involves presenting your case to a panel set by the Financial Industry Regulatory Authority (FINRA), not a courtroom. This approach is streamlined and focused on investment disputes, making it a suitable and effective way for investors to seek compensation for losses caused by financial advisors or brokerage firms.
FINRA (the Financial Industry Regulatory Authority) is a self-regulatory organization that oversees brokers and brokerages. In the event of a dispute between an investor and their financial advisor, investors can choose to file a FINRA arbitration claim. FINRA is overseen by the Securities and Exchange Commission (“SEC”).
The arbitration process is designed to be much faster than the court system and allows both parties to present their case before a panel of arbitrators. The arbitrators will then decide how to resolve the dispute, including ordering the advisor to pay damages for any losses suffered by the investor.
If you suffered losses in KKR Real Estate Select Trust or other investments, you are encouraged to contact attorney Steven D. Toskes, at 888-997-9956 or by email at investigations@klaymantoskes.com to discuss potential recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
As an investor, there are signs that you should look out for if you believe you have a claim against your broker/advisor for unsuitable investment recommendations in KKR Real Estate Select Trust. These signs could potentially indicate misconduct, negligence, or investment fraud. Investors are encouraged to contact our firm immediately if you have experienced any of the following:
Some investors have close relationships with their brokers due to the time and trust built over the course of their investment relationship. However, it is crucial to remember that financial decisions should be based on careful analysis and due diligence rather than solely relying on personal relationships.
Engaging the services of an experienced securities attorney to evaluate your specific circumstances is strongly advised. At KlaymanToskes, our team of experienced securities attorneys has a deep understanding of this complex area of law, allowing us to provide invaluable insight and tailored guidance that directly addresses your individual needs.
If you purchased unsuitable KKR Real Estate Select Trust investments, or any other unsuitable investments through your financial advisor/brokerage firm, and suffered significant losses, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you